Mary Schapiro’s job was to fix the SEC Essay Example for Free

Mary Schapiros job was to fix the sec Essay1.Kotters eight stepsAs already noted, the SEC was starkly exposed as ill-equipped to deal with the chaos erupting across the globe. It was under strong criticism for the serious fraud of Bernard Madoff and the collapse of rampart Street stalwart Lehman Brothers. Accordingly, Mary Schapiro, a career regulator, was appointed the 29th chairman of SEC to save a languishing SEC. She changed the focus they were doing things at the SEC including creating vernal structures, procedures, and programs to better address the modern financial markets as an urgent need to restore the credibility and public confidence in the SEC. This analysis is based on Kotters (1995) eight-step process for leading successful change. a.Establishing a sense of urgencyThe chairwoman argues that urgency is critical. Schapiro developed a change program with three priorities comprising intimate assessment, investor protection focus and mistakes acknowledgement. The m ission was to turn the SEC to be a high functioning, agile and intelligent, and committed to investor protection and market integrity.b.Creating a guiding confederacyIn order to able to manage the change process, she brought in new leadership and new senior team. The new leadership team set virtu bothy retraining, skilling up and motivating the SECs talent cater. In addition, the investor focused agenda was putting in place. The board and senior management and then all levels of decision making were required to pay attention to risk at all level of an enterprise. The whistle blower program was set up to disclose securities violations. A final goal was to admit the mistakes that the SEC made under its watch. This is the first step in communicating the change visual modality.c.Developing a vision and systemA vision was created to help direct the change effort, that was, to build a high functioning, agile and intelligent, and committed to investor protection and market integrity agency.d.Communicating the change visionIn order to communicate the change vision, the chairwoman developed an openway communication in which all staff and bankers could directly discuss with her.e.Empowering broad-based actionsThe SEC critically trained their staff to become certified fraud examiners. The organisation was restructured by removing the whole layer of management sending those to the frontline putting thousand staff to different focus groups such as corrupt foreign practices, insider trading, market manipulation and structured products. In addition, the SEC also set rules for over the restoration and asset backed securities, hedge funds and examination program.f.Generate short- term winsMonetary reward and safe avenue were offered to whistle blower as a way to encourage people to detect securities violation as part of the change program. Fine was charged to financial institution (Goldman Sachs) due to misleading investor mortgage securities.g.Consolidating gains and p roducing more than changeh.Anchor new approaches in the futureThe change within the SEC was continually anchored for several years after the change commenced.